Reasons to Consider Edison International as a Wise Investment Right Now
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Investment Potential: Edison International (EIX) is positioned as a strong investment option due to rising demand for clean electricity, systematic infrastructure investments, and a Zacks Rank #2 (Buy) rating, with a projected earnings growth rate of 10.93% over the long term.
Financial Performance: The Zacks Consensus Estimate for EIX's 2025 earnings per share has increased to $6.10, with revenues expected to grow by 4.90% to $18.46 billion, while the company has consistently paid dividends, yielding 5.76%.
Capital Investment Strategy: EIX is focusing on infrastructure development with significant capital expenditures, projecting $28-$29 billion in investments from 2025 to 2028, primarily for transmission, distribution, and generation capacity.
Comparative Analysis: EIX's return on equity (ROE) stands at 13.62%, outperforming the industry average, and while its shares have risen 6.9% over the past three months, they have slightly lagged behind the industry growth of 7%.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like FE with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on FE
Wall Street analysts forecast FE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FE is 49.25 USD with a low forecast of 46.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 47.410
Low
46.00
Averages
49.25
High
54.00
Current: 47.410
Low
46.00
Averages
49.25
High
54.00
About FE
FirstEnergy Corp. and its subsidiaries are involved in the transmission, distribution, and generation of electricity through its segments: Distribution, Integrated and Stand-Alone Transmission. The Distribution Segment, which consists of the Ohio Companies and FirstEnergy Pennsylvania Electric Company (FE PA), distributes electricity in Ohio and Pennsylvania. The Integrated segment includes the distribution and transmission operations under Jersey Central Power & Light Company (JCP&L), Monongahela Power Company (MP) and The Potomac Edison Company (PE), as well as MP's regulated generation operations. The segment distributes electricity in New Jersey, West Virginia and Maryland, provides transmission infrastructure, and operates 3,604 MWs of regulated net maximum generation capacity. The Stand-Alone Transmission segment consists of its ownership in FET and KATCo, which includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FirstEnergy's $538 Million Investment Enhances Electric Service for Penelec Customers
- Service Upgrade: FirstEnergy has completed an upgrade in McKean County for Penelec customers, with new underground cables providing more reliable electric service to over 1,000 customers in Bradford and Bradford Township, expected to significantly reduce outages and speed restoration.
- Long-Term Investment: This upgrade is part of FirstEnergy's Long Term Infrastructure Improvement Plan (LTIIP III), which allocates $538 million for enhancing electric system reliability in Penelec's service area, supporting local economic growth.
- Grid Modernization Goals: FirstEnergy plans to invest $28 billion through its Energize365 program between 2025 and 2029, aiming to create a smarter, more secure grid that meets the needs of today's customers and supports sustainable growth.
- Extensive Customer Base: Penelec serves approximately 597,000 customers across 17,600 square miles in northern and central Pennsylvania and western New York, underscoring its significant role and impact in the regional electric market.
Continue Reading
FirstEnergy Invests $538 Million to Enhance Electric Service for Penelec Customers
- Service Upgrade: FirstEnergy has completed an upgrade in McKean County for over 1,000 Bradford customers, with new underground cables that can carry more power, enhancing system reliability and flexibility.
- Outage Risk Reduction: The installation of redundant power lines allows for quick switching to alternative lines during issues, significantly reducing outage risks and bolstering support for local economic growth.
- Long-term Investment Plan: This upgrade is part of FirstEnergy's $538 million Long Term Infrastructure Improvement Plan aimed at modernizing the electric grid to enhance reliability and meet future customer needs.
- Future Development Strategy: FirstEnergy plans to invest $28 billion through the Energize365 program from 2025 to 2029 to build a smarter, more secure grid that meets the demands of today's and tomorrow's customers.
Continue Reading